new YorkThe dwindling hopes for US Federal Reserve's aggressive interest rate cuts have caused some reluctance among US investors today. Fears of the economic consequences of the ongoing US-China tariff also weighed on Wall Street sentiment. The Dow Jones Index of Standards closed 0.1% lower at 26,783 points. The broader S & P 500 rose 0.1 percent to 2,979 meters. The index of the technology exchange Nasdaq advanced by 0.5 percent to 8141 points.
If Fed Chairman Jerome Powell forecasts a cut in interest rates or curbs expectations at Wednesday's semi-annual US Congressional hearing, financial market turmoil is likely, said Michael Metcalfe, the asset manager's chief investment strategist State Street Global Markets. Although leading central bankers have repeatedly stressed that a rate cut in July is not yet a foregone conclusion, and many economists also do not feel the need to do so, investors firmly counted on such a move.
Single values in focus
In their trade dispute, the US and China have agreed to resume negotiations. However, US President Donald Trump's economic adviser Larry Kudlow stressed that there was no deadline for an agreement. Partly because of these imponderables, the analysts of the investment bank RBC Capital Markets expressed more cautious about the business prospects of the conglomerate 3M. The shares of the provider of "post-it" sticky notes lost 2.1 percent.
Almost half a percent went up for Cisco System. The US network equipment company wants to take over the component manufacturer Acacia Communications for about $ 2.8 billion. The purchase price will be paid in cash, Cisco said. Completion of the acquisition is expected in the second half of 2020. Based in Maynard, Massachusetts, Acacia designs and manufactures optical components and ranks telecommunications service providers and data center operators among its customers. Acacia bills jumped 35 percent.
The Nasdaq also received support from Netflix with a price increase of more than one percent. The video streaming service had earlier reported on a viewer record in the third season of the series "Stranger Things".
Fearing a disappointing balance sheet season, investors also withdrew from the European equity markets. The Dax lost 0.9 percent to 12,436 points on Tuesday and the EuroStoxx50 lost 0.4 percent to 3509 points.
At the New York Stock Exchange around 700 million shares changed hands. 1824 values increased, 1796 gave way and 330 remained unchanged. On the Nasdaq closed with sales of 1.82 billion shares 1628 in plus, 1483 in minus and 176 unchanged.
The US credit markets eased. Ten-year government bonds lost 7/32 to 102-25 / 32. The return rose to 2.0596 percent. The 30-year-old Bond fell 11/32 to 107-2 / 32 and returned 2.5361 percent.
More: Why the Dow Jones lags behind other indices despite record highs
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